RELIANCE SILICON (I) PVT. LTD. versus COLLECTOR, CENTRAL EXCISE, THANE

Citation: [1996] SUPP. 8 S.C.R. 501 · Decided: 06-11-1996 · Supreme Court of India · Bench: S.P. BHARUCHA

Judgment (excerpt)

RELIANCE SILICON (I} PVT. LTD. 
v. 
COLLECTOR, CENTRAL EXCISE, THANE 
NOVEMBER 6, 1996 
[S.P. BHARUCHA AND S.B. MAJMUDAR, JJ.] 
A 
' 
B 
Central Excises and Salt Act 1944--Silicone Oil-Preparations-
Classification whether under Item 15A(1} or 15AA--Countervailing duty 
paid under Item 15A(I) on import-Preparations made by mixing the oil 
with water and other diluting agents-Classifiable under Item 15AA as 
held by CEGAT and not under Item 15A(l)-1982 amendment to Item C 
15A(1) would not alter the position. 
Silicone Products-Classification-Whether under Item 15A(1) or 
Item 68-Held classifiable under Item 15A(I)-Any such product emerging 
as a result of condensation, poly condensation or poly addition also covered 
under the ambit of Item 15(A}. 
D 
Customs Tariff Act-Silicone Products-Classification-Whether 
under Heading 39.01106 or 38.01119-Held, Silicone products having 
undergone process of condensation, poly condensation and poly-addition-
Classifiable under Heading 39.01106 and not under 38.01119. Also, for E 
purposes of countervailing duty covered by Tariff item 15A ( 1 )-Amended 
item 15A not pari-materia with the earlier Item 15A. 
Appeals-Matters of highly technical nature-Decision of by expert 
body on the subject-Not to be lightly interfered with. 
Interpretation of Statutes : 
Classification of items under Central Excises and Salt Act 1944-
Where product squarely covered by express words of an item, reference to 
F 
the past history is of no relevance for deciding the taxability of the product. G 
These appeals were filed against diverse orders of the Central 
Excise and Gold, Appellate Tribunal (CEGA T). In the first category 
of cases filed on behalf of the Revenue, the issue to be determined was 
whether the preparations from silicone manufactured by the assessee-, 
manufacturers at the relevant time was classifiable under Central' H 
501 
502 
SUPREME COURT REPORTS [1996] SUPP. 8 S.C.R. 
A Excise Tariff Item ISA(I) or !SAA. A Five-Member Bench of the 
CEGAT had in an earlier matter taken the view that Silicone 
preparations are not silicone but only preparations containing silicone 
for use in textile processing and by their very nature these preparations 
are akin to surface active preparations, wetting agents, softener and 
as such classifiable under Item !SAA of Central Excise Tariff. It was 
B contended that the five Member Bench of the Tribunal had erred in 
taking the view that silicone preparations were covered under C.E. 
Tariff Item !SAA and not ISA(i). 
In the second category of cases, the main grievance of one of 
the assesses was that during the relevant period silicone oil imported 
C was governed for the purpose of customs duty and countervailing 
duty not under tariff Item ISA(!) but by residuary item 68 and 
accordingly covered by Chapter 38 of Customs Tariff of India I 98S-
86 and not by Chapter 39 thereof. One of the contentions put forth 
by the assessees was that earlier Tariff item I SA of CE Tariff was 
almost identical with the amended item ISA(I) save and except 
D additions of some further items but for applicability of item 15A(I) 
it had to be shown that the product concerned was artificial or 
synthetic resin or an article made up therefrom. 
In the third category of cases, in the two appeals preferred by 
E the assessees, the grievance was with respect to the Tribunal's order 
holding classification of silicone preparations under T.I. ISA(!) and 
not under T.I. 68. 
F 
Dismissing the appeals comprised in categories (I) and (2) and 
partly allowing the appeals comprised in category (3), this Court 
HELD : I. Diluted Silicone Oil and other preparations from 
silicone are classifiable under Tariff Item I5AA. A mere look at T.I. 
15A shows that if the commodity manufactured Is artificial or synthetic 
resin or any plastic material It would be covered by the sweep of this 
G item. The products prepared out of silicones by mixing them with 
other diluting agents like water etc. are not within the sweep of the 
said item. The silicone Oil which was impol'ted by the manufacturers 
was subsequently diluted and mixed and used in the manufacture of 
their products namely, silicone softeners 662 and silicone AU 33 I etc. 
They manufactured no goods by the process of condensation and· 
H polycondensation etc. Such silicone preparations out of imported 
RELIANCE SILICON (I) PVT. LTD. 1•. COLLECTOR, CENTRAL EXCISE 
5 Q 3 
silicone oil which underwent process of dilution could not be 

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